Calculators
Loan Payment Calculator
Estimate a fixed monthly loan payment and total interest.
Results appear here.
What the result means
The payment is a fixed monthly amount for a loan that is repaid in equal instalments. The rate you type is annual. It is divided by one hundred and then by twelve to make the monthly rate used in the formula. The number of months is the years multiplied by twelve. The payment is principal times the monthly rate times (1 + rate) to the power of the months, divided by that same power minus one. When the annual rate is zero, the payment is simply the principal divided by the months, because the interest formula would divide by zero. The result shows the payment, the total paid, and the interest. Fees, insurance, and extra payments are outside this estimate, which is what the banner says.
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Questions
Is the rate monthly?
No. The field is the annual rate. The formula divides it by 12 to get the monthly rate it actually uses. A 12 percent annual rate is 1 percent a month in this calculation.
Are fees included?
No. Fees and extra payments are not included. The interest line is only the gap between the scheduled payments and the principal. A lender charge would change the figure.
What if the interest rate is zero?
The payment is the principal divided by the number of months. Interest is zero in that case. The usual formula is skipped because it would divide by zero.